By Bazila Fayaz
The subcontracting plan threshold is $900,000, or $2 million for construction. What FAR 19.702 requires, who is exempt, and when the ISR and SSR fall due. A federal prime contract needs a small business subcontracting plan above $900,000, or $2 million for construction of a public facility. Here is the threshold, who is exempt, the plan elements reviewers reject, and when the ISR and SSR fall due. A federal prime contract needs a small business subcontracting plan once it exceeds $900,000, or $2 million for construction of a public facility. That figure is the subcontracting plan threshold, and FAR 19.702 sets it. Two other conditions have to hold. Your firm must be other than small, and the contract must offer real subcontracting possibilities. Miss the plan on a bid that needs one and the contracting officer can rule the offer ineligible. File it, and a reporting duty follows you for the life of the contract through the Individual Subcontract Report and the Summary Subcontract Report. This post covers the threshold itself, the exemptions, the plan elements reviewers reject, the two reports and their due dates, and where liquidated damages come from. The Subcontracting Plan Threshold FAR 19.702 carries the statutory requirement. A contract expected to exceed $900,000 needs a plan. Construction of a public facility carries its own figure, $2 million. The FAR Council adjusts both for inflation, so confirm the number in the solicitation in front of you rather than the number you remember. The threshold looks at total contract dollars, not the base period alone. FAR 19.705-2 (https://www.ecfr.gov/current/title-48/chapter-1/subchapter-D/part-19/subpart-19.7) tells the contracting officer to count option years and planned modifications. A $700,000 base with three $400,000 options crosses the line on day one. Firms that price only the base period and skip the plan lose the bid on a technicality. One more rule catches teams off guard. FAR 19.705-2 states that "a contract may not have more than one subcontracting plan." You cannot layer a task order plan on top of a vehicle-level plan. ! Decision path with four gates: contract over 900,000 dollars or 2 million for construction, firm other than small, performance inside the United States, and subcontracting possible, ending in a FAR 52.219-9 plan with ISR and SSR reporting (https://mhhifytmrlyksfrjacvi.supabase.co/storage/v1/object/public/blog-images/2026/10/subcontracting-plan-threshold-figure.png) Three of the four gates lead to no plan at all, so settle the dollar figure, your size status and the place of performance before you build a single goal. Who Is Exempt Four exemptions sit in FAR 19.702: - Small business concerns, whatever the contract value - Personal services contracts - Contracts your team performs entirely outside the United States and its outlying areas - Modifications inside the scope of a
A federal prime contract needs a small business subcontracting plan above $900,000, or $2 million for construction of a public facility. Here is the threshold, who is exempt, the plan elements reviewers reject, and when the ISR and SSR fall due.
A federal prime contract needs a small business subcontracting plan once it exceeds $900,000, or $2 million for construction of a public facility. That figure is the subcontracting plan threshold, and FAR 19.702 sets it. Two other conditions have to hold. Your firm must be other than small, and the contract must offer real subcontracting possibilities. Miss the plan on a bid that needs one and the contracting officer can rule the offer ineligible. File it, and a reporting duty follows you for the life of the contract through the Individual Subcontract Report and the Summary Subcontract Report. This post covers the threshold itself, the exemptions, the plan elements reviewers reject, the two reports and their due dates, and where liquidated damages come from. The Subcontracting Plan Threshold FAR 19.702 carries the statutory requirement. A contract expected to exceed $900,000 needs a plan. Construction of a public facility carries its own figure, $2 million. The FAR Council adjusts both for inflation, so confirm the number in the solicitation in front of you rather than the number you remember. The threshold looks at total contract dollars, not the base period alone. FAR 19.705-2 (https://www.ecfr.gov/current/title-48/chapter-1/subchapter-D/part-19/subpart-19.7) tells the contracting officer to count option years and planned modifications. A $700,000 base with three $400,000 options crosses the line on day one. Firms that price only the base period and skip the plan lose the bid on a technicality. One more rule catches teams off guard. FAR 19.705-2 states that "a contract may not have more than one subcontracting plan." You cannot layer a task order plan on top of a vehicle-level plan. ! Decision path with four gates: contract over 900,000 dollars or 2 million for construction, firm other than small, performance inside the United States, and subcontracting possible, ending in a FAR 52.219-9 plan with ISR and SSR reporting (https://mhhifytmrlyksfrjacvi.supabase.co/storage/v1/object/public/blog-images/2026/10/subcontracting-plan-threshold-figure.png) Three of the four gates lead to no plan at all, so settle the dollar figure, your size status and the place of performance before you build a single goal. Who Is Exempt Four exemptions sit in FAR 19.702: - Small business concerns, whatever the contract value - Personal services contracts - Contracts your team performs entirely outside the United States and its outlying areas - Modifications inside the scope of a